Positive on Cairn India: Nitin Raheja

In a chat with ET Now, Nitin Raheja, CIO, AQF Advisors, shares his views on Cairn India:

ET Now: What have you made of the Cairn India buyback price? Of course it is at a 3.5% premium to the current market price and thereby what it entails for Sesa Sterlite because that seems to be a bigger beneficiary being the parent?

Nitin Raheja: Cairn has always been on the buy list of most people. The stock price has really not been moving more due to the regulatory concerns that have flowed over it in terms of getting permissions for increasing their production capacity. There is a lot of cash that the company is generating. So, from a management perspective, it makes immense sense for it to do this buyback considering the amount of cash that the company is throwing out. So we have been positive on Cairn and we continue to remain positive on Cairn going by.